Common manufacturing systems are organized in batches or workflows. In batch production, the products are produced in one group at a time. In a workflow, a product is produced in sequential steps. The throughput of a manufacturing workflow is governed by the throughputs of the individual manufacturing steps as well as the wait times in between the steps. The latter is determined by how efficiently the product subbatches are scheduled and distributed throughout the manufacturing system. The cost of manufacturing is related to several factors: the efficiency of the equipment usage, the amount of labor, and the cost and waste of material usage. The cost of manufacturing can also be affected by the product delivery time. In an on-demand fulfillment business, customers may be willing to pay a premium price for fast turn around and may demand a penalty for late shipment.
A manufacturing system can produce products within the system, and can also receive parts from outside the system and completes the product packages in the manufacturing system. Each final product can include several product subbatches. After the product subbatches are produced or received, the product subbatches are packaged into final product packages for shipment. Packaging and shipping costs can be reduced by consolidating several product subbatches into a single product package. The consolidation step however often creates delays and bottlenecks to the manufacturing workflow, which increases the labor cost, equipment costs, and sometimes material and shipping costs.
There is therefore a need for an efficient manufacturing system that can fulfill products in short delivery times at low costs.